Official Assignee in Bankruptcy in the Property of Bainbridge v Menzies and Palmer

[2010] NZHC 1684

IN THE HIGH COURT OF NEW ZEALAND AUCKLAND REGISTRY

CIV 2009-404-003391

BETWEEN  THE OFFICIAL ASSIGNEE IN BANKRUPTCY IN THE PROPERTY OF KEITH JAMES BAINBRIDGE

Plaintiff

ANDANNIE CATHERINE MENZIES AND SIMON MIDDLETON PALMER AS TRUSTEES OF THE KAHURANGI TRUST

Defendants

CIV 2009-404-006101

BETWEEN  ANNIE CATHERINE MENZIES AND SIMON MIDDLETON PALMER AS TRUSTEES OF THE KAHURANGI TRUST

Applicants

ANDTHE OFFICIAL ASSIGNEE IN BANKRUPTCY IN THE PROPERTY OF KEITH JAMES BAINBRIDGE Respondent

Hearing:         23 June 2010

Appearances: K W Fulton and G Caro for the Plaintiff/Respondent

J McCartney SC for the Defendants/Applicants

Judgment:      2 July 2010 at 5:00 pm

JUDGMENT OF WYLIE J

This judgment was delivered by Justice Wylie on 2 July 2010 at 5:00 pm

pursuant to r 11.5 of the High Court Rules

Registrar/Deputy Registrar

Date:

THE OFFICIAL ASSIGNEE IN BANKRUPTCY IN THE PROPERTY OF K J BAINBRIDGE V A C MENZIES AND ANOR HC AK CIV 2009-404-003391  2 July 2010

[1]      There are two applications before the Court:

a)       An application  by Ms  Menzies  and Mr  Palmer  as  trustees  of  the Kahurangi Trust to set aside a default judgment obtained against them and sealed by the plaintiff — the Official Assignee — on 28 July

2009.  The judgment is in the sum of $2,105,833.50.

b)An application by Ms Menzies and Mr Palmer for special leave to extend the time within which they may appeal against a notice given by the  Official  Assignee  setting  aside  various  dispositions,  which notice is dated 8 April 2009.

[2]      I heard from counsel on 23 June 2010.  At the conclusion of the hearing, I made some preliminary observations to counsel and invited them to reconsider the position of their respective clients.  As a consequence, memoranda have been filed. Further, I convened two telephone conferences to discuss issues with counsel.

[3]      By consent, I make the following orders:

a)       The Official Assignee consents to the application to set aside the judgment in proceeding CIV 2009-404-003391.

b)        Costs in these proceedings are reserved.

c)        The parties agree that the following timetable directions will apply:

i)the plaintiff will file and serve an amended statement of claim by 16 July 2010 (service on the defendants may be effected by service  at  Mr  Palmer’s  offices  with  a  copy  emailed  to Ms McCartney);

ii)       the defendants will file and serve a statement of defence by

6 August 2010;

iii)      the    parties    will     provide    affidavits    of    documents    by

3 September 2010;

iv)      inspection will occur by 1 October 2010;

v)a  case  management  conference  (by  telephone)  is  to  be allocated after 15 October 2010; and

vi)a  fixture  is  to  be  allocated  for  five  days  (counsel  to  be consulted as to a convenient time).

d)Proceeding  CIV  2009-404-003391  is  to  be  consolidated  with  and heard  together  with  the  appeal  against  the  notices  issued  by  the Official Assignee in proceeding CIV 2009-404-006101.

e)       In proceeding CIV 2009-404-006101, the applicants withdraw their challenges to the 2003 and 2004 gifts.

f)        In  proceeding  CIV  2009-404-006101,  the  parties  agree  that  the application to extend time to enable an appeal is not opposed by the Official Assignee subject to the following:

i)        the applicants withdrawing their challenges to the 2003 and

2004 gifts; and

ii)the  applicants’  appeal  against  the  notice  to  set  aside  the dispositions set out in paragraphs 1, 2, 3 and 4 of the notice of

8 April 2009 shall proceed to a hearing, but on the condition that in the event that proceeding CIV 2009-404-00391 results in a balance being due by the trustee applicants to the Official Assignee, the trustees shall in any event agree to those parts of the   deeds   of   acknowledgement   of   debt   referred   to   in paragraphs 2 and 4 of the notice that relate to demand for repayment being set aside to the extent that such is necessary in order for the Official Assignee to make a demand.

g)        Costs in these proceedings are also reserved.

[4]      I thank counsel for their pragmatism and for their assistance in agreeing the terms of these consent orders.

Wylie J

Solicitors/Counsel:
Palmer & Associates, P O Box 74 062, Market Road, Auckland 1543

Ministry of Economic Development, Private Bag 92 061, Victoria Street West, Auckland 1142

J McCartney SC, P O Box 47 114, Ponsonby, Auckland 1144